By Ariana Gordon

In a major push to encourage the growth of small and medium-sized enterprises, the government will spend some US$10 million, Minister of Business Dominic Gaskin said Monday.This, together with the upgrade and of industrial estates and the resuscitation of two such estates, would lead to the creation of hundreds of jobs, Gaskion said in addressing the National Assembly. But Gaskin, the first to defend the estimates of the 2016 budget, said businesses need to play their part. Gaskin, has urged all businesses — small and large — to fulfill their tax obligations so that Government can fulfill its promise to deliver a good life for all Guyanese.

He said Government intends to provide much more support to the business community, but that community has also to do its part by being tax compliant.

“Too many small businesses do not factor into their business models the aspect of taxation. It is important for any Government to ensure that businesses pay taxes,” he said.

The Minister of Business announced that more than 400 small business operators will be trained to better understand their obligations under the tax laws. This training will also help to prepare them to access financing.
A total of US$10 million dollars will be utilized for this purpose.

Praising the 2016 Budget, Gaskin said the budget has “raised the spirits of Guyanese people”. He noted that the budget has raised the bar and set a new standard for effective public spending.

Speaking to job creation, the Minister of Business made it pellucid that the ruling administration is taking steps to ensure that few persons are unemployed. He said it is a fundamental role of any Government to ensure that its economy progresses in such a manner as to keep as many of its citizens gainfully employed.

“Mr. Speaker, during the 23 years the previous administration was in Government, it never saw fit to release any reliable statistics on unemployment. The rate of unemployment in Guyana had been a state secret for the last 23 years,” he said, promising that the current Government will make the necessary investments in the Bureau of Statistics to ensure that the Guyanese nation is regularly updated on the rate of unemployment here.

That aside, he stressed that the $52B capital budget will pump life into the economy, thereby boosting investor confidence, which is critical to the growth of the economy.

“Fortunately, that confidence is growing,” Gaskin told the National Assembly, while noting that “Guyana is a clean, wholesome and profitable place to do business.”

He said Budget 2016 provides the resources for Government to strategically achieve the goals it has set itself.

The Ministry of Business has many responsibilities, the minister noted, saying that an allocation of $1,215,817,000 to the Ministry, with current expenditure standing at $668,564,000 and capital budget standing at $547,253,000 will go a long way.

He said it is important for the Guyanese populace to understand the allocations and know what their money is being used for.
In this regard, he explained that $212M will this year be used to develop and fix industrial estates. He noted that those estates will lead to much job creation.

“Two new sites, Mr. Speaker — one in Lethem, Region 9, which, once completed, will be able to accommodate at least 100 businesses; and another one in Belvedere, Region 6, which is smaller and has space for about 20 businesses…. These projects have been languishing in the pipelines for well over a decade, and our Government will complete them so that appropriate work space can be provided for investors in value-added industries,” Minister Gaskin declared.

Gaskin said that, upon completion, the two sites will fall under the Ministry of Business, as Government “will not allow them to degenerate into replicas of the badly managed Eccles and Coldingen estates.”

Government, nevertheless, has plans to rehabilitate the Coldingen Industrial Site, which will see construction of two new bridges being built to facilitate heavy-duty vehicles transporting materials to and from the businesses which operate there.

“Proper management will become a priority, so they become sustainable and the economy benefits,” he said.

The Minister of Business also said that development of land for value-added activities is also high on Government’s agenda. He noted that, by the end of next year, all of the industrial sites combined will create, at the very least, 1, 500 new jobs. That figure, he said, will increase as occupancy increases.

He also noted that Government will be completing the projects that were left incomplete by the former administration under the Rural Enterprise Development Network. He said Government was forced to put a hold on the projects so that their status could be reviewed.

Gaskin noted that Government intends to construct two call centres, one in Tuschen and the other in Enmore; along with two chip factories, one in Wakenaam and the other in Leguan. However, Government will be unable to proceed with the Chip Factory in Leguan, as that factory is located in an area that is prone to flooding and erosion.

The National Exhibition Site in Sophia will this year receive massive upgrades in time for GUYEXPO, which will be held in May. According to Gaskin, the site is in desperate need of an upgrade, and will see significant sums being saved from the rental of tents.

The Guyana National Bureau of Standards (GNBS), along with the Guyana Office for Investment (GO-Invest) have also received significant sums aimed at enhancing their work. The GNBS has a valuable role to play in promoting the use of standards, the Minister stressed, noting that the entity is an important tool in building a strong force with the Private sector. $35M have been allocated to enhance the capacity of the GNBS.

GO-Invest has been described as a key agency in advancing Guyana’s economic growth. That entity’s capital budget stands at $26M.
Additionally, the minister stated that Government is committed to ensuring development and sustainability of a successful small business sector, and will ensure that small operators are given a space in the public procurement pipeline.

Gaskin wants the marking approach of the Small Business Bureau to be enhanced. He noted that persons outside of Region 4 must be able to access the services of the Bureau.